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Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Condensed Financial Information of Registrant |
MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS
| December 31,
| 2014 |  | 2013
| (Amounts in thousands)
ASSETS |  |  |
Investments, at fair value: |  |  |
Equity securities (cost $189,032; $27,449) | $ | 182,300 |  |  | $ | 29,737 |
Short-term investments (cost $9,744; $11,089) | 9,744 |  |  | 11,089 |
Investment in subsidiaries | 1,783,049 |  |  | 1,794,164 |
Total investments | 1,975,093 |  |  | 1,834,990 |
Cash | 52,326 |  |  | 46,332 |
Accrued investment income | 158 |  |  | 16 |
Amounts receivable from affiliates | 1,181 |  |  | 206 |
Current income taxes | 239 |  |  | 0 |
Deferred income taxes | 6,975 |  |  | 1,068 |
Income tax receivable from affiliates | 3,482 |  |  | 11,573 |
Other assets | 1,095 |  |  | 459 |
Total assets | $ | 2,040,549 |  |  | $ | 1,894,644 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |
Notes payable | $ | 150,000 |  |  | $ | 50,000 |
Accounts payable and accrued expenses | 0 |  |  | 23 |
Amounts payable to affiliates | 97 |  |  | 34 |
Income tax payable to affiliates | 14,728 |  |  | 6,730 |
Current income taxes | 0 |  |  | 12,672 |
Other liabilities | 278 |  |  | 2,699 |
Total liabilities | 165,103 |  |  | 72,158 |
Shareholders’ equity: |  |  |
Common stock | 88,705 |  |  | 81,591 |
Additional paid-in capital | 3,804 |  |  | 411 |
Retained earnings | 1,782,937 |  |  | 1,740,484 |
Total shareholders’ equity | 1,875,446 |  |  | 1,822,486 |
Total liabilities and shareholders’ equity | $ | 2,040,549 |  |  | $ | 1,894,644 |
SCHEDULE II, Continued
MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF OPERATIONS
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
| (Amounts in thousands)
Revenues: |  |  |  |  |
Net investment income | $ | 4,478 |  |  | $ | 1,293 |  |  | $ | 1,114 |
Net realized investment (losses) gains | (9,428 | ) |  | 3,416 |  |  | 697 |
Total revenues | (4,950 | ) |  | 4,709 |  |  | 1,811 |
Expenses: |  |  |  |  |
Other operating expenses | 5,971 |  |  | 2,924 |  |  | 1,688 |
Interest | 1,746 |  |  | 318 |  |  | 0 |
Total expenses | 7,717 |  |  | 3,242 |  |  | 1,688 |
(Loss) income before income taxes and equity in net income of subsidiaries | (12,667 | ) |  | 1,467 |  |  | 123 |
Income tax (benefit) expense | (100 | ) |  | 3,310 |  |  | 1,800 |
Loss before equity in net income of subsidiaries | (12,567 | ) |  | (1,843 | ) |  | (1,677 | )
Equity in net income of subsidiaries | 190,516 |  |  | 113,986 |  |  | 118,588 |
Net income | $ | 177,949 |  |  | $ | 112,143 |  |  | $ | 116,911 |
STATEMENTS OF COMPREHENSIVE INCOME
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
| (Amounts in thousands)
Net income | $ | 177,949 |  |  | $ | 112,143 |  |  | $ | 116,911 |
Other comprehensive income, before tax: |  |  |  |  |
Gains on hedging instrument | 0 |  |  | 0 |  |  | 0 |
Other comprehensive income, before tax | 0 |  |  | 0 |  |  | 0 |
Income tax expense related to gains on hedging instrument | 0 |  |  | 0 |  |  | 0 |
Other comprehensive income, net of tax: | 0 |  |  | 0 |  |  | 0 |
Comprehensive income | $ | 177,949 |  |  | $ | 112,143 |  |  | $ | 116,911 |
SCHEDULE II, Continued
MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
| (Amounts in thousands)
Cash flows from operating activities: |  |  |  |  |
Net cash used in operating activities | $ | (3,434 | ) |  | $ | (843 | ) |  | $ | (5,590 | )
Cash flows from investing activities: |  |  |  |  |
Capital contribution to controlled entities | (30,125 | ) |  | (40,125 | ) |  | (125 | )
Dividends from subsidiaries | 231,756 |  |  | 120,000 |  |  | 145,000 |
Equity securities: |  |  |  |  |
Purchases | (254,572 | ) |  | (25,038 | ) |  | (14,102 | )
Sales | 90,422 |  |  | 25,798 |  |  | 7,308 |
(Decrease) increase in payable for securities, net | (2,489 | ) |  | 2,489 |  |  | 0 |
Net decrease (increase) in short-term investments | 1,346 |  |  | 36,085 |  |  | (20,413 | )
Other, net | 2,191 |  |  | 895 |  |  | 429 |
Net cash provided by investing activities | 38,529 |  |  | 120,104 |  |  | 118,097 |
Cash flows from financing activities: |  |  |  |  |
Dividends paid to shareholders | (135,496 | ) |  | (134,776 | ) |  | (134,105 | )
Excess tax benefit from exercise of stock options | 148 |  |  | 202 |  |  | 86 |
Proceeds from stock options exercised | 6,247 |  |  | 1,446 |  |  | 2,492 |
Proceeds from bank loan | 100,000 |  |  | 50,000 |  |  | 0 |
Net cash used in financing activities | (29,101 | ) |  | (83,128 | ) |  | (131,527 | )
Net increase (decrease) in cash | 5,994 |  |  | 36,133 |  |  | (19,020 | )
Cash: |  |  |  |  |
Beginning of year | 46,332 |  |  | 10,199 |  |  | 29,219 |
End of year | $ | 52,326 |  |  | $ | 46,332 |  |  | $ | 10,199 |
SUPPLEMENTAL CASH FLOW DISCLOSURE |  |  |  |  |
Interest paid | $ | 1,757 |  |  | $ | 318 |  |  | $ | 0 |
Income taxes paid (received) | $ | 2,112 |  |  | $ | (827 | ) |  | $ | 4,667 |
The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in this report. Dividends Dividends of $225,000,000, $120,000,000 and $145,000,000 were received by Mercury General from its 100% owned insurance subsidiaries in 2014, 2013, and 2012, respectively, and are recorded as a reduction to investment in subsidiaries. Capitalization of Insurance Subsidiaries Mercury General made capital contributions to its insurance subsidiaries of $125,000 in each of 2014, 2013, and 2012. Notes Payable The borrowings by MCC, a subsidiary, under the $120 million credit facility and $20 million bank loan are secured by approximately $181 million of municipal bonds owned by MCC, at fair value, held as collateral. The total borrowings of $140 million are guaranteed by the Company. On July 2, 2013, Mercury General entered into an unsecured $200 million five-year revolving credit facility. Effective December 3, 2014, the Company expanded the borrowing capacity from $200 million to $250 million. Total borrowings were $150 million as of December 31, 2014. Federal Income Taxes The Company files a consolidated federal income tax return with the following entities:
Mercury Casualty Company |  | Mercury County Mutual Insurance Company
Mercury Insurance Company |  | Mercury Insurance Company of Florida
California Automobile Insurance Company |  | Mercury Indemnity Company of America
California General Underwriters Insurance Company, Inc. |  | Mercury Select Management Company, Inc.
Mercury Insurance Company of Illinois |  | Mercury Insurance Services LLC
Mercury Insurance Company of Georgia |  | AIS Management LLC
Mercury Indemnity Company of Georgia |  | Auto Insurance Specialists LLC
Mercury National Insurance Company |  | PoliSeek AIS Insurance Solutions, Inc.
American Mercury Insurance Company |  | Animas Funding LLC
American Mercury Lloyds Insurance Company |  | Fannette Funding LLC
The method of allocation between the companies is subject to an agreement approved by the Board of Directors. Allocation is based upon separate return calculations with current credit for net losses incurred by the insurance subsidiaries to the extent it can be used in the current consolidated return.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7656940&loc=d3e5283-111683 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph c -Article 7 + Details
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